3 Reasons You're Losing Employees Because of Pay

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In this article, we explore three current and critical compensation problems that cause employers to lose talented employees. These issues include low salary increases, lack of differentiation in pay by performance, and difficulties finding the actual "going rate" for jobs.

Problem 1: Low or modest salary increases

Salary budgets have been lagging for 3-4 years, pay increase budgets are not growing rapidly, and the outlook for significant pay raises is fairly bleak. This means that your employees' salaries probably aren't growing. What happens when the market doesn't match what your employees want? Should you keep your pay practices firmly aligned with the market, or adjust them to what your employees want?
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Book Review: The Three Signs of a Miserable Job

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In “The Three Signs of a Miserable Job,” author Patrick Lencioni writes a fable about a retired CEO who strives to understand what causes misery at work.

Congratulations to the Winners of this month's book contest!

This month's winners are Colleen Bennett, Marlene Hansen, Amanda Peace, Roxanne Putnam, and Marci Kehoe. Congratulations! Stay tuned next month for another contest!

Brian Bailey, a retired CEO, experienced years of success as a leader. Once retired, he finds himself restless and dissatisfied, needing a business problem to fix. One night, Brian and his wife Leslie experience poor customer service at a local restaurant near their retirement home. As an inquisitive problem solver and lover of managing people, Brian begins a quest to determine why this small local restaurant is experiencing poor service, and more importantly, why its employees seem so miserable.
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$30 Million in Training Dollars to be Made Available

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The new Ohio Incumbent Workforce Training Voucher program is scheduled to be announced in the next 30 days. It is expected that $30 million in training dollars will be dispersed between now and the end of June, 2013. It is also expected that the grant will deplete very quickly - grants are awarded on a first come, first serve basis.

ERC's Pete Bednar recently met with the Ohio Department of Development to learn more about the program. In order to secure the funding, an application must be filled out and include course title, the training date(s), and training provider.

If you would like more information or need assistance with your application process, please contact Pete Bednar at 440-947-1293 or pbednar@yourerc.com.

Where Do Pay Adjustments Come From?

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As reported in Crain’s Cleveland Business in September of 2012, Northeast Ohio employers both gave and are projecting giving an average of a 3% increase across all job categories in 2012 and 2013, respectively. But how are these increases determined and what do they mean in terms of an overall investment by the organizations offering raises?

While the ERC Salary & Wage Adjustment Survey itself does not report on these specifics, it does specify that that this 3% increase accounts for any pay adjustment given during a 12 month period and could include any adjustments from general across-the-board or cost-of-living adjustments to merit based raises. Some additional insights can be drawn from another ERC survey published in early summer of 2012, i.e., the 2012 Pay Adjustment & Incentives Practices Survey. According to this survey, merit based increases are by far the most common method of determining increases here in Northeast Ohio, approximately 80% of respondents. Of those organizations providing merit based increases, a wide majority do so on an annual basis regardless of organizational size or industry type. Interestingly, cost-of-living raises were the least popular type of adjustment, coming in at just under 7%.

Based on ERC’s historical data trends for the Pay Adjustment & Incentive Practices survey, this strong preference for merit based pay adjustments is far from surprising. However, a steady decrease in cost-of-living pay adjustments over the past several years accompanied by a corresponding increase in the frequency of merit-based raises offers a clear illustration of the continued move towards pay-for-performance.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results

The 5 Most Common Pitfalls of Performance Reviews

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Performance reviews are important tools that managers can use to boost employee performance and productivity to higher levels, but often fall prey to some common mistakes. As your organization prepares to review employee performance in the coming months, we recommend avoiding these 5 pitfalls.

 
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2012/2013 Salary & Benefits Budgeting Guide

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We’ve compiled a brief compensation and benefits budgeting guide to help your organization make important pay and health care decisions for fall 2012. The guide summarizes the latest and most important trends as of September, 2012 related to administering compensation and health care benefits, which affect your organization as it plans for 2013. 
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Raises Hit 3%, Projections Remain Strong

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In an economy fraught with ongoing uncertainty, Northeast Ohio employers hit a once seemingly insignificant milestone in terms of salary and wage adjustments for 2012 and 2013, 3% raises. The overall average actual and projected raises reported in ERC’s annual Wage and Salary Adjustment Survey both hit 3%, the first time both figures have reached the 3% mark together since 2008. Further optimism for 2012 can be found in projections for 2013, which indicate that of those organizations projecting raises for 2013, more than half are predicting at least 3% raises.

In terms of actual percent raises offered by individual industries, a 2012 article from Crain’s Cleveland Business cites ERC’s survey results, noting, “when it came to actual raises, service companies loosened the purse strings a little more than manufacturers.” However, there are positive signs for the manufacturing industry as well.
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HR Analysts Experience Job Growth Statewide

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In an era where an uncertain economy demands that business expenses undergo intensive financial scrutiny and metrics such as “return on investment” or ROI calculations are a driving force behind business decisions large and small, benchmarking trends in human resources is part of the expected norm.

From compensation and benefits analysis to a wide variety of workplace practices benchmarks, HR plays a major role in analyzing how your organization’s pay and benefits practices stack up next to the competition. Demand for this type of data driven decision making bodes well for the HR specialists whose major job duties involve analysis and reporting of these critical HR metrics.
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4 Hiring Practices Successful Employers Use

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4 Hiring Practices Successful Employers Use

Ever wonder how employers select a perfect match for a job? In our research, their secret lies in using certain hiring methods to select the right employees, specifically these four practices.

1. Behavioral Interviewing

Behavioral interviewing is one of the most accurate hiring techniques and ideal for evaluating skills and competencies necessary for effective job performance. Behavioral interviewing, as opposed to traditional interviewing, evaluates candidates' past performance by having job candidates describe specific stories, examples, experiences, and results that indicate their ability to perform certain job tasks and responsibilities.

Examples of behavioral interview questions include:"Provide an example of...", "Tell me about an experience when...", or "Describe how you did...". Typically, a candidate is asked to provide a description of the situation, task, action, and result in response.
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A Brand Evolution

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At ERC, we've recently gone through a rebranding process and we're excited to share with you the new look of ERC.

ERC has an updated logo for the first time in over a decade. We've dropped the old octagons for a clean, contemporary and bold logo that features our brand and our tagline, "Where Great Workplaces Start". We feel that these bold updates represent our contemporary culture and mission of supporting organizational success through the attraction and retention of great employees.


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